Many corporations use compensation software to manage the salaries, bonuses, and other types of compensation for a number of employees. Based on several factors, such as work experience, work performance, position, etc., the compensation software can be run to determine pay increases, bonuses, etc. Also, by using customized calculations, a compensation administrator can attempt to create a compensation plan that is fair to all employees.
In order to apply certain compensation rules for the corporation, the compensation administrator can create dynamic calculations, which can use information stored in one column of a worksheet or spreadsheet and perform calculations on this information to generate additional information. For example, if a company-wide bonus is designed to compensate each employee based on years of experience, then a “Years of Experience” number is used from one column to calculate the “Bonus” in another column. Therefore, dynamic calculations enable a compensation administrator to automatically derive values within one column upon the entry or update of information into another column, which is comparable to cell calculations that are performed in a conventional spreadsheet.